MYGA

Consider Multi-Year Guaranteed Annuities (MYGAs) if you're seeking a stable investment option to secure your retirement or long-term financial aspirations. MYGAs promise a fixed rate of return over a predetermined period, offering predictability and peace of mind to investors. When you invest in a MYGA, you provide a lump-sum payment to the insurance company, which guarantees a fixed interest rate over the specified term, typically ranging from three to ten years.

The allure of MYGAs lies in their guaranteed returns, often surpassing those of other fixed-income investments like CDs or money market accounts. Additionally, they may provide certain tax advantages depending on their structure. However, it's crucial to weigh the drawbacks as well. MYGAs may not offset inflation, potentially diminishing purchasing power over time. Furthermore, they lack liquidity, imposing significant fees or surrender charges if funds are accessed prematurely. Despite these considerations, MYGAs can be an attractive option for risk-averse investors seeking stability and predictability in their investment portfolio. Consulting with a financial advisor is advisable to determine whether MYGAs align with your financial goals and risk tolerance.